Regional Economies Create Differences

Chapter 7 Section 1

I Another Revolution Affects America• Interchangeable parts manufacturing out of ppls homes into

factories• Factory System= using power driven machineryMass Production=

production of goods in large quantities• Both lead to Industrial Revolution= massive change in society and

economy as a result of large scale mechanized factories

A. Great Britain Starts a Revolution & Industrial Rev. in US

• Industrial Rev. began in GB w/ invention of water, steam, & coal powered machines used to produce mass goods• Rushing rivers, coal deposits, &

labor that allowed GB to industrialize was available in the US• US main source of income=

international trade• War of 1812 blockades hurt foreign

tradeUS dev. Industries at home

B. New England Industrializes• NE center of industrialization• GB made illegal for anyone w/

knowledge of industrial mach. To leave• Sam Slater comes to Amer. Built 1st

successful mechanized textile factory in RI

• Francis Cabot Lowell built mechanized weaving factory w/ power machines in Mass.• Built entire town for workers including

homes for rent, & storesextremely successful• Lowell Girls= young girls who moved to

work in Lowell’s factory's

• Town of Lowell named after him

II Two Agricultural Systems Develop

• As N was developing industries, the S continued to reap benefits of cotton• N & S develop a completely diff. econ. systems

A. Cotton becomes King in the South• Eli Whitney invents the cotton

gin• Made it possible to remove seeds

from easier to grow short staple cotton

• S sold clean cotton to GB and NES made large profits• Wealthy planters bought large

areas of land and bought slaves to cultivate land• More and more planters begin to

profit from cotton

• Cotton gin expansion of slavery

B. Slavery becomes Entrenched• Slavery was more econ. To southern planters who profited from slave

labor• Fought to keep slavery legal• Increase of cotton production=increase of slave labor

• Few Af. Amer. Were free• Bought freedom by hiring themselves out after they finish daily work• Some ran away or granted freedom after yrs. Of service

III Clay Proposes the American System• Madison proposes econ. Plan to unify

country’s diff. regions and econ.• Henry Clay names Madison’s plan the

American System• Protective Tariff• Resurrection of Nat’l bank (reduced under

Jefferson)• Gov’t sponsoring trans. Systems

• N would manufacture goods that the agricultural S & W would buy• S & W would produce food & cotton that

was needed in the N

A. Tariffs & the National Bank• GB goods priced lower then Amer. Made

goods Amer. Bought cheaper GB goods• Tariff of 1816=allowed US to compete by

forcing foreign co. to raise price of goods to pay for tax• $ brought in from tariff would be used to build

roads & canals

• S didn’t support because gov’t was raising prices• Support for national bank was more universal

• Reg. banks were issuing their own currency which made trade diff.

• 2nd National Bank made single currency guaranteed to be accepted around the nation

• Congress passed the 2nd Bank of US for 20yrs.

B. Erie Canal & Other Internal Improvements• There needed to be a way to connect people in order to do business• States built roads (turnpike paid for themselves)

• Nat’l Road= 1st major highway built by the gov’;t• Erie Canal= connected Hudson River and Great Lakes• Improvements led to flourishing countrymost Americans were

happy• Monroe becomes president & ushers the “era of good feelings”